The WDSU I-Team has learned that a high-ranking city leader has threatened a multibillion-dollar transportation company with arrest and fines if they dare try to bring their business to the city.

City leader sends cease and desist letter, threatening app-based company from coming to NOLA

The WDSU I-Team has learned that a high-ranking city leader has threatened a multibillion-dollar transportation company with arrest and fines if they dare try to bring their business to the city.

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Updated: 6:40 PM CST Nov 21, 2013

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WEBVTT LANDRIEU PRIDES ITSELF ON BEINGFORWARD THINKING - TRYINGTO ATTACH NEW, TECHNOLOGYRELATED BUSINESS TO ACITY ACCUSED - AT TIMES - OFBEING STUCK IN THE PAST.BUT THE WDSU I-TEAM HAS LEARNEDTHAT A HIGH RANKINGCITY LEADER HAS THREATENED AMULTI-MILLION DOLLARTRANSPORTATION COMPANY WITHARREST AND FINES IF THEY DARETRYTO BRING THEIR BUSINESS TO THECITY. AND THIS IS NO SMALLOPERATION ...TAKE A LOOK AT WHERE THISPARTICULAR BUSINESS ISALREADY UP AND RUNNING.... FROMHONOLULU TO OKLAHOMA CITYAND BEYOND.INVESTIGATIVE REPORTER TRAVERSMACKEL IS LIVE AT SIXWITH WHY ONE STATE OFFICIAL ISCALLING THE NEW ORLEANS "BAN"THE BIGGEST "ANTI-BUSINESS" MOVEHE'S EVER SEEN.THE COMPANY IS CALLED "UBER" ANDIT IS AN APP BASED BUSINESSTHAT OPERATES NOT ONLY IN THOSE40 AMERICAN CITIESBUT IN 20 FOREIGN COUNTRIES,TOO. AND UBER TELLS US YES --THEY WANT TO BRING THEIR SERVICETO NEW ORLEANS ... BUT ITAPPEARSTHE CITY'S TAXI CAB DIRECTORWANTS TO PREVENT THATFROM HAPPENING.IN A CITY WHERE TOURISM IS THELIFEBLOOD INDUSTRY ... THETAXI CAB INDUSTRY IS BIGBUSINESS. MORE THAN A HALFDOZEN MAJOR CAB COMPANIESOPERATE IN NEW ORLEANS.Nats JASON COLEMAN OWNS UPTOWN-BASED COLEMAN CABS AND SAYSBUSINESS ISN'T "ALWAYS" GREAT.the summers are slow.HIS GREATEST FEAR: THE ADDITIONOF MORE TAXI CABS OREVEN WORSE, CAR SERVICEPROVIDERS.it could be the last straw formany drivers - there is notenough business for them day today.BUT THE WDSU I-TEAM HAS LEARNEDTHAT A CONTROVERSIAL,BUT FAST-GROWING CAR SERVICECALLED "UBER" WANTS TO GET INTOTHE MARKET. UBER SAYS IT'S ALUXURY CARSERVICE, NOT A CAB COMPANY ...EVEN THOUGH IT OPERATES MUCHLIKE A TAXI CAB - CHARGING AFARE TO BRING RIDERS FROM ONELOCATION TO ANOTHER. NO MONEYCHANGES HANDS BETWEENTHE PASSENGER AND DRIVER. WITHUBER, RIDERS MUST DOWNLOADAND USE AN APP TO ORDER A CARAND MAKE A PAYMENT. INMOST CASES, THE VEHICLES AREDARK, UNMARKED CARS -- OFTEN ASTEP UP FROM A TYPICAL TAXI.Nats - ESSOME ELECTED LEADERS HAVE BEENTRYING TO RECRUIT THECALIFORNIA-BASED COMPANY TOLOUISIANA.uber is a service in virtuallyin every major city in the USand europe.AND THE COMPANY IS WELLFINANCED. THIS YEAR. GOOGLEVENTURES PUMPED MORE THAN $$$MILLION IN FUNDING INTOUBER... AND WALL STREET GIANTGOLDMAN SACHS IS ALSO ANINVESTOR. PUBLIC SERVICECOMMISSIONER ERIC SKRMETTA SAYSWHILE HE'S BEEN TRYING TO GETUBER HERE, THE CITY'S TRYINGTO KEEP THE COMPANY AWAY. THISLETTER - OBTAINED BY THEWDSU I-TEAM - WAS SENT LASTMONTH FROM THE HEAD OF THECITY'S TAXI CAB BUREAU - MALACHIHULL - TO UBER PRESIDENT ANDFOUNDER TRAVIS KAIANICK. ITORDERS UBER TO "cease unlawfultransportation operations" INNEW ORLEANS. THE LETTER GOES ONTO SAY "failure to do so willresult in further action beingtaken, such as, civilfines and/or imprisonment." ithough it was one of the mostanti-business movesi've ever seen. BEAR IN MIND,UBER IS NOT YET OPERATING IN NEWORLEANS ... ACOMPANY SPOKESPERSON SAYS IT'STHE FIRST TIME INUBER'S 4 YEAR HISTORY ITRECEIVED A CEASE AND DESISTLETTER FROM A CITY WHERE ITISN'T ACTUALLY PROVIDING ASERVICE. UBER HAS ONLY POSTEDJOB WANTED ADS ON IT'S WEBSITELOOKING FOR POTENTIAL DRIVERS INTHE AREA. THELETTER FROM HULL WENT TO UBER --AND TO NOPDSUPERINTENDENT RONAL SERPAS ANDTHE HEAD OF THE LOUISIANASTATE POLICE, MIKE EDMONSON. itverges on government obscenity,it really is - thestate police do not need to knowabout this.UBER SPOKESPERSON NAIRIHOURDAJIAN SAYS "This lettermarked a first for Uber - aCease & Desist from a city inwhich our serviceisn't even available. MalachiHull - IATR's "Regulator of theYear" - maywant to check his facts the nexttime he goes out of his way tolimitconsumer choice in New Orleans.His time and the city'sresources may bebetter spent reformingantiquated transportationregulations that keep innovativetechnologies like Uber out ofthehands of millions of Louisianaresidents and visitors who wantincreasedsafety, reliability, and value." here you have a company thatdoes not ever operate inlouisiana that receives a ceaseand desist letter from a cityagency - it can be nothing elsebut personal and vendettadriven.AN ALLEGATION THE CITY DENIES.BUT MALACHI HULL IS A PASTPRESIDENT OF A GROUP CALL IATR -THE INTERNATIONALASSOCIATION OF TRANSPORTATIONREGULATORS. HIS PICTURE APPEARSON THE GROUP'S WEBSITE AND HE'SSTILL A MEMBER THE BOARD OFDIRECTORS. THE IATR IS ANOUTSPOKEN CRITIC OF UBERAND SEVERAL PRESS RELEASES ONTHE GROUP'S WEBSITE BLASTTHE COMPANY AND LIST IT'SSERVICE AS A "ROGUE SMARTPHONE APP." ONE RELEASE FROMHULL'S GROUP SAYS: "The waragainst rogue apps is not yetover, but the tide has turned,and the IATR iswinning!" it does look likesomeone has not restrainedthemselves - and has acted in away that does not serve thepublic interest.THE CITY WOULDN'T MAKE MALACHIHULL AVAILABLE FOR AN INTERVIEW,BUT EXPLAINED IN A STATEMENTTHAT IT HAS SOFTENEDITS TONE TOWARDS UBER, SAYING:"Upon receiving noticethat unlicensed commercialtransportation services wererecruiting to start operationsin New Orleans, the Taxi CabBureauproactively reached out toadvise companies of the City'slicensingrequirements. The City isprepared to assist any and allfor-hire companies wishing tooperate in New Orleans with thepermitting process required bythe municipal code." i thinkit's good to be pro-active, notreactive.HULL WAS HIRED BY MAYOR MITCHLANDRIEU IN 2011 AND HAS COMEUNDER FIRE FOR IMPOSING ANDENFORCING NEW TAXI CABREFORMS IN THE CITY. Nats -FightEARLIER THIS MONTH, HE WAS ATTHE SCENE OF A CONFRONTATIONBETWEEN A TAXI BUREAU INSPECTORAND A FRENCH QUARTERTOUR GUIDE. THE INCIDENT LED TOTHE INSPECTOR'S SUSPENSION ANDARREST -- BUT OFFICIALS HAVEN'TCOMMENTED ONHULL'S PRESENCE AND FAILURE TOINTERVENE. DESPITE THECITY'S LETTER TO UBER, SKRMETTASAYS HE'S MOVING FORWARD WITHEFFORTS TO BRING UBER -- ORSIMILAR PROVIDERS -- TOLOUISIANA... i've decided thatI am going to ask my fellowcommissioners to approve atariff - which is a ratestructure - that would approveand accommodateblack car services for thestate.TO SEE THE LIST OF CITIES WHEREUBER IS CURRENTLYOPERATING AGAIN -- LOG ONTO OURWEBSITE AT WDSU.COM.WE SHOULD POINT OUT THAT TWOSTATES AND ONE OF THE LARGESTCITIES IN AMERICAHAVE CHALLENGED UBER'S LEGALITY- CALLING THEM ANUNREGULATED CAB COMPANY, ONLY TOLATER REVERSE COURSEAND WORK ON DEALS TO ALLOW THESERVICE. THE COMPANY HASN'TLAID OUT A TIMETABLE FOR APOSSIBLE LAUNCH HERE IN NEWORLEANS.COMING UP AT TEN ... NOT ALLLOCAL CAB SERVICES AREAGAINST UBER. HEAR WHAT ONECOMPANY IS SAYING ABOUTTHE SITUATION AND WHAT THEY'REALREADY DOING TO STAYCOMPETITIVE AS THEY BELIEVEUBER'S ARRIVAL IS IMMINENT.

City leader sends cease and desist letter, threatening app-based company from coming to NOLA

The WDSU I-Team has learned that a high-ranking city leader has threatened a multibillion-dollar transportation company with arrest and fines if they dare try to bring their business to the city.